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The high transaction speeds of Avalanche (AVAX), the smart contracts platform, are causing buzz in the cryptocurrency space. Analysts are looking for a possible breakout that can drive AVAX to fresh highs as a recent price drop seems almost to be over. Experts warn a dose of cautious optimism before investors go on the bandwagon among the optimistic whispers, though.
A Consolidation Phase Hints At Breakout Potential
Analyses of AVAX’s present price movement have them riveted on their charts. Often preceding a bullish breakout, the coin is consolidating inside a declining wedge formation technically. Prominent crypto expert Worlds Of Charts notes that this consolidation points to a good comeback following a past downturn.
Consolidating In Falling Wedge Chart Pattern Seems Like Healthy Correction Has Almost Completed Now Getting Ready For Breakout & Preparing For Bullish Continuation Expecting Move Towards 60-65$ In Case Of Successful Breakout #Crypto #Avax pic.twitter.com/XafWguyk8w
— World Of Charts (@WorldOfCharts1) July 1, 2024
The expert said that one important clue AVAX may be coiling up for a strong upward surge is the declining wedge. Should the breakout materialise, Worlds of Charts projects a price explosion towards the $60-$65 level.
Supporting this view, well-known crypto prediction tool CoinCodex presents a more forceful projection. Their figures show an astonishing 227% rise for AVAX, which drives the price to a high $91.46 by August 2, 2024.
On-Chain Metrics Reveal Investor Confidence
On-chain data from IntoTheBlock, meantime, shows investor confidence. With over half (51%) of AVAX holders in profit right now, AVAX has a good long-term prognosis.
Some 45% of investors have kept onto their AVAX for more than a year, showing a dedication to the long-term goal of the project. This helps to boost confidence even further.
Another interesting observation is the surge of big investors, also known as whales, in the AVAX ecosystem. With a major 72% of the circulating supply, these whales help to create stability. Whale activity may have a big influence on price swings; their ongoing AVAX investment shows they recognise the platform’s possibilities.
A Call For Measured Optimism
The recent price decline also reminds us of the natural volatility in the crypto industry. A definite breakthrough is still to be observed even if the declining wedge pattern points to a possible reversal. Under rigors examination and with a properly defined investment plan,
Avalanche could be about to surge significantly. For now, nevertheless, investors are advised to use prudence and against being carried away by the wave of positive excitement.
Featured image from Pexels, chart from TradingView
